Key Takeaways:
- The Hang Seng Tech Index fell 2% to 4,670.14 on June 16
- G7 leaders met in France to address China's record $1.2 trillion trade surplus
- HK$255 billion in lockup expiries in July threaten further selling pressure
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Hang Seng Tech Index slides 2% as G7 trade fears mount
The Hang Seng Tech Index fell 2% to 4,670.14 on Tuesday, its biggest single-day drop in three weeks, as Group of Seven leaders gathered in France to confront China's export surge and a wave of lockup expiries threatened to deepen selling pressure on Hong Kong-listed technology stocks.
"China's export surge, unless its leaders rein it in, will provoke a protectionist wave against Chinese imports worldwide," said Maurice Obstfeld, senior fellow at the Peterson Institute for International Economics and former chief economist at the International Monetary Fund.
The selloff erased gains from the previous session and pushed the tech gauge deeper into negative territory for the year. At least HK$255 billion worth of shares from initial public offerings and secondary sales will see their temporary lockups expire in July, the most for any month through the rest of 2026, according to exchange data compiled by Bloomberg. Goldman Sachs Group estimates IPO-induced lockup expiries in the city will total US$274 billion in the coming year, a record for any 12-month period. Companies facing substantial expiries include AI model developer MiniMax Group and chip designer Shanghai Biren Technology.
The decline coincided with French President Emmanuel Macron's warning that Chinese exports are "literally killing a large part of the European industry," setting the stage for potential tariff action from the European Union. China last year notched a record global trade surplus of $1.2 trillion, with exports to the 27-nation EU climbing 16.4% in the January-to-May period from a year earlier. The Hang Seng Index, which has fallen 3% this year, also came under pressure as traders weighed the implications of tighter trade barriers. The Shanghai Composite Index declined alongside Hong Kong, while the offshore yuan traded near 7.25 per dollar, reflecting broader risk aversion across China-related assets.
This article is for informational purposes only and does not constitute investment advice.
[1] China Shock 2.0: Surging Chinese Exports Threaten Europe's Economy, Raising Concern at G7 Summit[2] Hong Kong market faces pressure as HK$255 billion in locked shares expire in July - The Business Times[3] Fengyi IPO tests AI’s ability to fix China’s unmanned retail problem - thebambooworks.com[4] Jardine to buy back $641.5 million shares; S’pore-listed stock falls 4% - The Straits Times
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